Cavitation-Induced Fusion

1. Cavitation-Induced Fusion Tomorrow’s Clean Energy

2. Fusion: Disruptive Innovation We have discovered a means for achieving micro-thermonuclear fusion in vibrating gas bubbles in liquid Our discovery allows constructing inexpensive power generators that run on deuterium Our technology will render fossil fuels obsolete Because our work parallels controversial “bubble fusion” we go against “expert opinion”

3. What is Fusion? • Hydrogen isotopes deuterium and tritium combine forming helium and releasing massive amounts of heat • 10 micrograms of deuterium = 1 barrel of oil (!!!)

4. Why Fusion? Everyone agrees that fusion energy (which powers the sun) is the power of future Unlike chemical energy that comes from burning fossil fuels fusion energy produces no emissions Unlike conventional nuclear power fusion does not produce radioactive waste Unlike wind or solar power fusion energy does not require massive installations and is virtually free (deuterium is cheap and we need minuscule quantities)

5. Where is Fusion? Government has spent billions and decades of research on fusion projects involving giant magnets (magnetic confinement) and powerful lasers (inertial confinement) These fusion mega-projects are unsuccessful but “too-big-to-fail”, so funding continues Proponents of fusion mega-projects are threatened by “cold” fusion and “bubble fusion” and therefore will thrash any competing idea

6. Competing Idea: Cavitation Cavitation is a natural process that results in formation of bubbles in liquid Cavitation bubbles expand and collapse violently releasing tremendous energy that easily eats through thick metal parts in pumps and turbines

7. Cavitation-Induced Fusion (CIF) Theoretical calculations show that under the right conditions gas within cavitation bubbles can heat up to fusion temperatures (millions degrees Celsius)! Seven different groups in U.S. and Russia have conducted successful experiments demonstrating CIF Unfortunately, widely publicized work by Taleyarkhan (Purdue), ended in scandal with lasting damage to the field

8. “Bubblegate” Scandal Critical account is given by Krivit (New Energy Times) Politics, academic rivalry, and clashes with special interest groups killed otherwise promising field of research As a result Purdue lost majorityof it’s nuclear engineering faculty The science, however, remains

9. CIF: Successful Experiments 1990, Lipson et al. (USSR) 2002, Taleyarkhan et al. (USA, ORNL) 2005, Xu et al. (USA, Purdue) 2006, Taleyarkhan et al. (USA, Purdue) 2006, Forringer et al. (USA, Purdue) 2006, Bugg et al. (USA, Purdue) 2008, Bityurin et al. (Russia) 2008, Smorodov et al. (Russia)

10. CIF Science Conventional textbook physics (NOT cold fusion) Solid theoretical foundation (dozens of papers) 4 independent successful experiments in USA, and 3 in Russia (Russian work is not known in the US) Yet due to the “bubblegate” scandal the results are not universally accepted (skewed perception)

11. Our Accomplishments • Analytical model in Wolfram Mathematica • Molecular dynamics (MD) simulation software • Three experiments • Preliminary results • Prototype generator hardware

12. Single-Bubble Experiment

13. Multi-Bubble Experiment

14. Prototype Generator Hardware

15. Our Results • Analytical model and MD simulation predicts fusion • Neutrons were detected in several experiments • Commercial generator prototype designed • Careful experimentation required to validate our model and refine it into an engineering tool

16. Immediate Goals: 2012 • Demonstrate CIF proof of commercial concept • Detailed experimental plan is in place; will test best options first • May require up to 12 months to test all feasible options • Outcome = repeatable, on-demand fusion • File global patents • Engage industry and academia in technology validation • We will publish our results in peer-reviewed journals • We will engage AECOM (world’s largest engineering firm) to supervise and validate the results • Develop modeling software for CIF engineering to facilitate next stage (net generation of energy) • Minimum capital requirement: $562k USD

17. Roadmap beyond 2012 • 2013 • Process control demonstration • Net positive energy demonstration • 2014 – 50kW commercial generator prototype, technology license agreements, IPO • Capital required to IPO stage may be up to $50 million, but with proof of commercial concept in hand finding further investors will be easy • We already have commitment from Bushnak Water (Saudi Arabia) for $2M investment once we complete Phase I of the project • 2016 – 50 MW commercial generator

18. Commercial Viability • We estimate that 1 liter of carrier liquid saturated with fusion bubbles will produce at least 10kW of power • Power output scales with volume • Power output exponentially depends on temperature: tenfold temperature increase results in 50,000 increase in output power! • Therefore minute process improvement will result in huge power output boost

19. Commercial Products & Services • Technology licensing • Desalination • Low-grade heat generator design and manufacturing (kW-MW) • Electric power generators design and manufacturing

20. CIF Power Plant Aside from the CIF reactor, this is a completely standard power plant design

21. CIF Commercial Potential • CIF is inherently safe • No radioactivity, no possibility of meltdown or explosion, no hazardous waste, no fear of weapons proliferation, no emissions or pollutants • CIF is the ONLY new energy source that can compete financially against fossil fuels and win • Wind, solar and biomass can never replace fossil fuels for a variety of reasons relating to cost and intermittancy • A CIF power plant requires none of the safeguards and shielding of existing nuclear plants • Heat from CIF can produce electricity, or heat and cool buildings • CIF can scale from a few MW (e.g. universities, hospitals or neighborhoods) to thousands of MW (grid electricity) • This technology can replace oil, coal and natural gas in virtually all stationary applications • Did we mention desalination? Fusion will provide free unlimited fresh water.

22. Intellectual Property • U.S. Provisional Patent Application #61,560,666, “Cavitation-Induced Fusion”, filed 11/16/2011 • U.S. full patent application and world patent applications will be filed in 2012

23. The Company • Quantum Fusion, Inc. is wholly owned by Quantum Potential Corporation • Location: Penn State Innovation Park • Employees: 5 (including part time) • State of the art equipment • Office, lab, industrial space

24. The Quantum Fusion Team • Dr. Max Fomitchev-Zamilov – president, chief scientist • Sergei Godin – chief engineer, alternative energy, electrical engineering and cavitation technology expert • Dr. Andrew Belmonte – consultant, mathematical modeling (Associate Prof. of Mathematics at Penn State) • Dr. Stu Kurtz – consultant, plasma science (Prof. Emeritus of Electrical Engineering, former Director of Materials Research Institute, Penn State) • Dr. Gary Catchen – consultant, neutron detection (Prof. of Nuclear Engineering, Penn State) • Ken Robinson – VP business development (VP and National Director of Business Development, AECOM) • Tariq Alturkestani– VP business development – Middle East Region • Dr. Richard Lahey* – consultant, bubble fusion pioneer (Prof. Emeritus of Engineering, RPI) • Dr. Robert Nigmatulin* – consultant, principle contributor to nano-scale sonofusion theory (Member, Russian Academy of Sciences; Director, Institute of Oceanology RAS) • Collectively, this team has the scientific, engineering and management expertise needed to succeed quickly • * Collaborators for Skolkovo application

25. Competition – The Race is On! • Impulse Devices - received $35M on CIF research sponsored by DoD • General Fusion– raised $13.75M and $19.5M in private equity in two rounds of funding • Lawrenceville Plasma Physics – started by former DoE National Lab scientists • Defkalion – the Greeks may have a working cold fusion reactor • The competition is good, but Quantum’s approach is superior • Access to extensive Russian research not generally known in the West • Extensive interaction with key US researchers has given us unique insights • Our approach is simpler and significantly cheaper

26. Our Competitive Advantage • Prior work relies on D-D fusion. We will use D-T fusion as it gives 1,000 times higher reaction rate. • Prior work relies on cavitation to create random bubbles, which is difficult and hard to control. We will inject engineered bubbles instead. • Prior work relies on high pressure (40-1,000 bars). We have engineered our bubble content (light and heavy gas mixture) to create strong shock that will produce fusion at just 1.5 bars of pressure. • Prior work relies on acoustic cavitation, which is inefficient. We will use hydrodynamic cavitation in our commercial unit.

27. Investment Offer & ROI $1 million = 10% ownership, non-dilutable We need at least $562k for 2012 to complete our R&D program We are aiming to disrupt a multi-trillion dollar energy market. Our technology has a potential to displace all fossil and conventional nuclear fuels all together. Even if we capture just 0.1% of the market the expected ROI will be well in excess of 100x

28. Technical Risks The only foreseeable risk is in single-bubble fusion. Is it repeatable? Can we control it? We will eliminate this risk in 2012. The rest of the hardware for commercial generator is essentially designed and requires only ordinary engineering. Other technical risks may include inability to control fusion yield beyond break-even point for reasons we currently cannot think of. We will tackle this issue in 2013.

29. Reasons to Invest • We are humble, we recognize mistakes, we will listen to your advice • We have more than one approach to the problem in case we hit a roadblock • We have committed our own money • We will succeed: preliminary data and works by others support our optimism

30. Reasons Not to Invest • Our model may be wrong and our results may be in error • Our model may be correct, but despite 12 months of effort we may fail to demonstrate repeatable fusion for various technical reasons that we cannot anticipate currently • Someone may come up with a better technology sooner • You will miss the money • You are afraid of the risk

31. Fusion Benefits for the USA Smooth transition away from fossil fuels Renewed technological leadership Birth of an entire new industry = employment! Markedly reduced energy and transportation costs = cheaper goods and services, hence Higher consumer spending, GDP & tax revenue growth

32. Fusion Benefits for the World Markedly reduced energy and transportation costs = sharp improvement in living standards, hence More middle class (and larger markets!) Cheap desalination will solve food and water shortages, deserts will become oases Reduced emissions of all types A new age of prosperity for all of humanity

33. Invest in Quantum Fusion “It is not because things are difficult we do not dare, it is because we do not dare that they are difficult.” – Seneca Contact Dr. Max Fomitchev-Zamilov, President 200 Innovation Blvd, Suite 254, State College, PA 16803 max@quantum-potential.com | 814-777-8993 www.quantum-fusion.com